The looming record harvest and war in West Asia are likely to spur mOre wheat farmers are seeking higher support prices through government procurement as the staple is 15% lower than last year on the open market, according to farmers and industry experts.
Minimum Support Price (MSP). ₹2,585 per cent announced for the current rabi 2026-27 marketing season is ₹290 per cent higher than the average price of wheat in the open market ₹2,294.82 per quintal as on March 7.
Lower prices on the open market this year reflect production forecasts of up to 120 million tonnes for the current year, driven by higher acreage, favorable conditions and government incentives. At this level, it would surpass the previous record of 117.94 million tonnes set in the 2024–25 marketing year (rabies season). The government usually starts buying wheat in April, but can start earlier if requested by states.
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The current situation marks a sharp turnaround from the previous 2025-2026 marketing season, when open market prices exceeded MSP.
Farmers’ inclination to sell more to the government this year also comes amid fears of war West Asia may hit wheat exporters even as the world’s second-largest producer of the staple decided to reopen overseas supplies after nearly four years of curbs.
“With open market prices below MSP, it is important for government agencies to ensure purchase of all the wheat brought by farmers to Mandis in major producing states,” said Devinder Sharma, an agricultural policy expert. “This will help farmers secure remunerative prices for their produce and stabilize market sentiment.”
Lower prices on the open market
The area under wheat in the 2025-26 marketing year increased by about 6.13% from the previous year to about 33.4 million hectares as of January 30, according to official data. The increase in sowing was supported by adequate soil moisture, favorable climatic conditions in key producing states and better price incentives.
Madhya Pradesh and Rajasthan have announced wheat purchase bonus ranging from ₹40 per cent ₹150 per quintal beyond the MSP, thereby reducing the price ₹2,625 a ₹2,735 per cent, or The wholesale price of wheat in Delhi ranges around ₹2480-2500 per cent.
Last season, wheat was sold at an average price ₹2,689.45 per quintal in the open market compared to MSP of Rs ₹2,425 per cent.
“Procurement arrangements are being strengthened to handle the expected increase in arrivals at Mandis. The government plans to expand procurement facilities and provide adequate infrastructure at designated centers so that farmers can sell their produce in MSP without facing logistical hurdles,” said a government official requesting anonymity.
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Agriculture and allied sectors account for approximately 16% of India’s gross domestic product (GDP), with nearly 46% of the country’s workforce dependent on agriculture.
“This is the best time for farmers to take advantage of MSPs. When market prices fall, government support to MSPs becomes even more important,” said Rakesh Arrawatia, Professor at the Institute of Rural Management Anand (IRMA) and Dean, School of Cooperative Banking and Finance and an agricultural economist. “With free market prices currently lower, farmers can benefit from selling their produce through MSP’s purchase.”
Queries emailed to the Ministry of Consumer Affairs and Food Distribution and Agriculture on March 9 remained unanswered as of press time.
Anticipating challenges
“It is certain that farmers will opt for government mandis to sell their wheat crop as the MSP rates are higher than the prevailing market price,” said Rattan Randhawa, a farmer from Deo village in Punjab’s Taran Tarn district.
Farmers’ unions say they may face problems accessing shopping centers and selling their produce in SMEs because the infrastructure is limited and inefficient.
“Farmers will naturally prefer to sell their produce at government mandis where there is a well-established purchasing infrastructure and facilities, as this ensures that they receive MSP. However, in several states, mandi infrastructure and purchasing arrangements are still limited,” said Balbir Singh Rajewal, president of the Bharatiya Kisan Union (Rajewal), a farmers’ organization in India that represents the interests of producers in northern states such as Rajasthan, Punjab and Pradesh.
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“In such regions, farmers may face difficulties in transporting and selling their wheat in the shopping centers. Unless adequate infrastructure and supply logistics are strengthened, many farmers may not be able to fully benefit from the MSP mechanism,” said Rajewal.
